StemBioSys Closes $8 Million Series A Financing

SAN ANTONIO--(BUSINESS WIRE)--Privately-held StemBioSys, Inc., based in San Antonio, closed on a fully
subscribed $8 million Series A Preferred Stock financing on April 1st,
2015.

According to StemBioSys CEO Bob Hutchens, the company is investing the
proceeds primarily in a GMP manufacturing facility and market
preparations for a mid-2015 launch of its proprietary and novel advanced
stem cell culture system -- HPMETM (High Performance
Microenvironment) -- for sale in the stem cell research market.

“StemBioSys is actively pursuing therapeutic applications for its
products and is currently engaged in more than 14 strategic partner
collaborations focused on the feasibility of therapeutic applications
using the company’s patented core technologies,” Hutchens said. “In
addition, we have initiated multiple collaborative, sponsored research
agreements with leading academic institutions to further validate the
utility of the HPMETM technology. These include The
University of Texas Health Science Center at San Antonio, University of
Texas at San Antonio, and Langer/Anderson Laboratories at MIT.”

“We are thrilled to see this extraordinary level of investor validation
and confidence in our technology and prospects,” StemBioSys Board Chair
Cathy Burzik said. “Our company was founded in 2010, and we have made
great strides in the development of our proprietary technology and our
business model. Closing this new preferred stock series provides us with
significant capital needed to push through this next phase of corporate
development.”

Targeted Technology Fund, also of San Antonio Texas, led the financing
with an investment of $2.25m followed by more than 50 Angel investors to
close out the round.

Hutchens said StemBioSys has plans for a Series B financing in late
2015/early 2016 to complete the commercial launch of the HPMETM
research product and continue to explore therapeutic applications for
its proprietary novel technologies.

About HPMETM

The HPMETM technology replicates the 3-dimensional “home” in
which stem cells naturally reside and proliferate. This unique
technology enables users to isolate and grow stem cells from a variety
of sources including but not limited to adipose, bone marrow and
umbilical cord blood/tissue. The 3-dimensional microenvironment allows a
variety of stem cells to replicate more rapidly and with greater
preservation of stem cell phenotype (“stemness”) than traditional tissue
culture plastic. It has allowed StemBioSys to efficiently grow stem
cells from sources such as adipose tissue, bone marrow, and umbilical
cord blood and tissue opening up potential for research, pharmaceutical
and novel clinical uses.

About StemBioSys, Inc.

Stem cells are the future of medicine. We are the future of stem cells.
StemBioSys is located in San Antonio, Texas, proximate to the University
of Texas Health Science Center at San Antonio from which we have
licensed proprietary and disruptive technology for the enhanced
isolation, growth, and delivery of stem cells for research, diagnostic
and therapeutic applications.